A Basic Principle in Economics Is That Correlation ________ Imply

question 17

Multiple Choice

A basic principle in economics is that correlation ________ imply ________.

• A) does not necessarily; causation
• B) does; causation
• C) does not necessarily; independence
• D) Both A and C

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Definitions:

Efficiency Wage

A theory suggesting that higher wages can increase worker productivity and efficiency, leading to better performance and lower turnover.

Frictional Unemployment

The short-term unemployment that arises from people moving between jobs, careers, or locations.

Technological Improvement

Enhancements in technology that increase the efficiency of production or the quality of goods and services.

Labor Union

An organization formed by workers to protect their rights and interests, often negotiating wages, work hours, and working conditions with employers.